InsideSME Weekly: E-commerce Trends, Economic Outlook, and More – June 18, 2024
Welcome to this week’s edition of InsideSME Weekly, your source for the latest business news and trends impacting South African entrepreneurs and business owners. Here are the top stories and insights you need to know.
Top Stories
- JSE surges to all-time high on post-election optimism
The JSE soared to a new record high, closing 3.5% stronger on Tuesday, its biggest single-day gain this year. The rally was driven by renewed investor confidence following the announcement of a government of national unity (GNU). Financials, retailers and SA Inc stocks led the charge.
[Source: MoneyWeb] - Large petrol price cut expected in June as oil hits 3-month low
Motorists can expect some relief at the pumps, with the petrol price predicted to decrease by around 87c per litre in June. Diesel and illuminating paraffin are also set for significant cuts. The drop comes as Brent crude oil hit a 3-month low of $82 per barrel.
[Source: News24] - Vodacom fires over 600 employees for fraud and irregularities
Vodacom, SA’s biggest mobile operator, has dismissed 631 staff members and contractors following a year-long probe into alleged fraud and irregularities. The company investigated over 8,600 cases, with 15 suspects ultimately arrested.
[Source: BusinessTechl] - Sars Takes the Shine Off Shein:
Local retail and logistics industry stakeholders have welcomed an intervention by the department of trade, industry & competition that will see international e-commerce retailers taxed for small packages at the same rates as larger orders. The move aims to “level the playing field” for local retailers following criticism that Chinese firms like Shein and Temu were “abusing” tax loopholes.
[Source: TechCentral] - ‘Huge’ Chinese interest in Eastern Cape special economic zone
The Coega Development Corporation (CDC) reports significant interest from Chinese investors in its Eastern Cape special economic zone. A memorandum of understanding with the China Construction Bank is set to establish Coega as a global strategic partner and promote business between the two countries.
[Source: BusinessTech]
Industry Trends
- Business & Management sector leads in remote work opportunities
One in five remote workers in South Africa operates in the Business & Management sector, making it the top industry for work-from-home jobs. This is followed by Information Technology and Finance roles. However, overall remote job postings have declined year-on-year. - Construction Sector Poised for Growth:
The construction sector is expected to be one of the few economic sectors hitting 2024 running, driven by increased investment in infrastructure, renewable energy projects, and government spending ahead of the elections. Activity in the civil construction sector has been on an upward trajectory, signaling potential growth opportunities for businesses in this industry.
Expert Opinions
- Uncertainty to weigh on rand despite post-election optimism
“Investors should be very worried because South Africa is at a fork in the road. Right now, almost any coalition outcome is possible,” said Anne Frühauf, managing director at Teneo. While a coalition with the DA would be most market-positive, the uncertainty is likely to pressure the rand in the near-term. - Sarb may hold rates as inflation eases
“Although some key metrics in the economy may well begin to improve in 2024, the national ‘feel good’ factor is nevertheless likely to lag well behind,” writes Dr Roelof Botha, economic advisor to the Optimum Group. He expects the Sarb to keep rates on hold as inflation remains within target.
Upcoming Events
- E-commerce Evolution Gathering on June 26 in Sandton
The E-commerce Evolution Gathering brings together industry leaders to discuss the latest trends and strategies in online retail. Register now: [Here] - Customer Experience Transformation Conference (July 30, 2024 – Sandton)
Explore the latest trends and best practices in customer experience management at this comprehensive conference. Register now: [Here]
New Articles & Resources
- New Gas Master Plan open for public comment
Minister Gwede Mantashe has published a new Gas Master Plan for South Africa, outlining the role of gas in the energy mix. It considers supply options, infrastructure needs and aims to facilitate a seamless transition. Read the full plan and submit comments by June 15: [Source: Business Tech] - Sanlam to acquire 60% stake in DStv insurance business
Insurer Sanlam will purchase a 60% stake in MultiChoice South Africa’s insurance unit for R1.2 billion. The deal grants MultiChoice access to Sanlam’s expertise and resources across Africa. Learn more:[Source: Tech Central]
That wraps up this week’s business news roundup. For more insights and updates, visit our website at insidesme.co.za. Until next week, stay informed and keep growing your business.